India's central bank RBI is discussing the introduction of digital currency and CBDC with minimal effects on monetary policy - regulation
India's central bank RBI is discussing the introduction of digital currency and CBDC with minimal effects on monetary policy - regulation

The Indian Central Bank, the Reserve Bank of India (RBI), says that a fundamental digital central bank model (CBDC) must first be adopted and extensively tested in order to minimize the effects on the monetary policy and banking system of the country. The Indian APEX bank sees several advantages in the introduction of a digital rupie, including "a potential to increase the efficiency of the efficiency of cross-border payments".
rBI outlines the advantages of the output of digital currencies and the introduction of a CBDC with minimal effects
The Reserve Bank of India (RBI) released its “Report on Trend and Progress of Banking in India 2020-21” on Tuesday. The 248-page report contains a section on the digital currency of the central bank.
"A digital central bank currency (CBDC) is a safe, robust and comfortable alternative to physical cash", the Indian central bank and added: "Depending on various design decisions, it can also take the complex form" of a financial instrument. " The RBI continued:
Compared to existing forms of money, users can offer advantages with regard to liquidity, scalability, acceptance, simple transactions with anonymity and faster processing.
The Indian central bank found that there were “crucial questions” about the design of a digital central bank currency that would have to be answered before it was introduced. One question is, for example, "whether the CBDC is available for general purposes and for retail (CBDC-R) or whether it should be used for wholesale (CBDC-W)."
The RBI emphasized that “in a country like India the decision on sales architecture, ie OB CBDC is issued directly from the central bank or via commercial banks, must be carefully weighed up.”
The APEX-Bank points out that the assessment of the scope of the emission and distribution will help "to identify the appropriate underlying technology that is best suited for the processing of such operations," explained the APEX bank:
In view of their dynamic effects on macroeconomic politics, it is necessary to take on basic models and to test them comprehensively so that they have minimal effects on monetary policy and the banking system.
When discussing the role of a digital central bank currency for cross -border transactions, the RBI said that "the introduction of CBDC has the potential to increase the efficiency of cross -border payments and in the future an alternative to correspondence banks." The report shows:
India progress in the payment systems will form a useful backbone to provide its citizens and financial institutions a state -of -the -art CBDC.
In the meantime, RBI-Gouvenur Shaktikanta has repeatedly said that the central bank serious and big concerns about cryptocurrency. At its most recent meeting of the central board, the RBI asked the Indian government to have a Complete prohibition Cryptocurrency that says that a partial ban does not work. Nevertheless, the government plans to report that regulate with the seconds and Exchange Board of India (Sebi) as the main regulator.
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